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Accounts Receivable Agreement
"I need an Accounts Receivable Agreement for my UAE manufacturing company to secure financing against our receivables from a local bank, with a facility limit of AED 10 million and assignment of receivables from our top 5 industrial customers."
1. Parties: Identification of the parties entering into the agreement, including full legal names, addresses, and registration details
2. Background: Context of the agreement, including the business relationship and purpose of the arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Assignment of Receivables: Core provisions regarding the transfer or management of receivables, including scope and effectiveness
5. Purchase Price and Payment Terms: Details of consideration and payment mechanisms for the receivables
6. Representations and Warranties: Standard representations regarding authority, ownership, and quality of receivables
7. Covenants: Ongoing obligations of both parties throughout the agreement term
8. Collection and Servicing: Procedures for collecting and managing the receivables
9. Reporting Requirements: Regular reporting obligations and information sharing requirements
10. Events of Default: Circumstances constituting default and consequential rights
11. Remedies: Available remedies in case of breach or default
12. Term and Termination: Duration of the agreement and termination provisions
13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Security Arrangements: Additional security provisions when specific collateral or guarantees are required
2. Credit Insurance: Provisions relating to credit insurance when receivables are insured
3. Electronic Systems: Provisions for electronic platforms or systems used in managing receivables
4. True Sale Provisions: Specific provisions establishing true sale characteristics when required for securitization
5. Sharia Compliance: Additional provisions when the agreement needs to be Sharia-compliant
6. Cross-Border Provisions: Additional provisions for international receivables
7. Data Protection: Specific provisions regarding data protection when handling sensitive information
1. Schedule 1 - Eligible Receivables Criteria: Detailed criteria for receivables eligible under the agreement
2. Schedule 2 - Form of Assignment Notice: Standard form for notifying debtors of the assignment
3. Schedule 3 - Operational Procedures: Detailed procedures for day-to-day operations
4. Schedule 4 - Pricing Mechanism: Detailed calculation methods for purchase price and fees
5. Schedule 5 - Reporting Templates: Standard forms for required reports
6. Schedule 6 - Initial Receivables Portfolio: Details of receivables included at commencement
7. Appendix A - Power of Attorney: Form of power of attorney for collection purposes
8. Appendix B - Compliance Certificates: Templates for ongoing compliance certification
Authors
Account Debtor
Administration Fee
Advance Rate
Assignment Date
Available Funds
Business Day
Collection Account
Collection Period
Cut-off Date
Default Interest
Dilution
Discount Rate
Eligible Receivable
Encumbrance
Event of Default
Face Value
Facility Limit
Invoice
Material Adverse Effect
Maturity Date
Notice of Assignment
Payment Date
Purchase Price
Receivable
Receivables Schedule
Related Rights
Reporting Date
Security Interest
Seller
Settlement Date
Transaction Documents
Transfer Certificate
UAE Dirham
Authority
Calculation
Confidentiality
Conditions Precedent
Consent
Consideration
Data Protection
Default
Dispute Resolution
Electronic Communications
Enforcement
Fees
Force Majeure
Further Assurance
Governing Law
Indemnification
Interest
Jurisdiction
Notices
Payment
Perfection
Performance
Representations
Security
Severability
Survival
Tax
Term
Termination
Title
Transfer
Undertakings
Warranties
Waiver
Banking and Financial Services
Manufacturing
Retail
Healthcare
Construction
Technology
Telecommunications
Transportation and Logistics
Professional Services
Energy and Utilities
Real Estate
Trading and Distribution
Finance
Legal
Treasury
Credit and Collections
Operations
Risk Management
Compliance
Commercial
Accounts
Business Development
Chief Financial Officer
Finance Director
Treasury Manager
Credit Manager
Accounts Receivable Manager
Financial Controller
Legal Counsel
Commercial Director
Risk Manager
Operations Manager
Collections Manager
Relationship Manager
Credit Analyst
Finance Manager
Compliance Officer
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